Board attorney: engineering agreement stalled after Big Sandy declines to add district; litigation may reach trial in 2027

The Martin County Water District heard legal updates Tuesday about a stalled engineering agreement and the status of pending litigation.

Board attorney (speaker 2) told the board that Mesquite Engineering has not executed an engineer-of-record agreement that recognizes the water district as an owner of infrastructure. He said Big Sandy Ave., the counterparty, declined the district’s request to be named as a party in the contract and has not provided the district with a proposed contract for the board’s approval. "They've approved. They've refused to do that," the attorney said, adding that efforts to resolve the issue directly with Big Sandy Ave. have not succeeded.

The attorney said he contacted the U.S. Department of Housing and Urban Development to ask whether HUD could offer guidance; HUD declined to intervene. He also wrote to staff in a congressman’s office seeking assistance and has not yet received a response. "We wrote to HUD to see if they might be able to provide us any guidance or assistance on the issue. HUD declined to do so," he said.

On related legal matters, the board received an update on the raw-water intake litigation. Outside counsel, Bill Giesen of Stites & Harbison, completed initial written discovery and has sought a scheduling order to set deadlines and, if possible, deposition dates. The attorney told the board that the opposing counsel for Big Sandy has been largely unresponsive to scheduling requests. If a scheduling order is entered, counsel believes trial could be scheduled for June 2027. "If he's able to get a scheduling order in place, he believes trial would probably be scheduled for next summer, June 2027," the attorney said.

The attorney offered to have Mr. Giesen appear at the next board meeting to answer questions about litigation strategy and timing.

Why it matters: Without an agreement that recognizes the district’s ownership interests, the board said it cannot formally approve contract language or fully protect the district’s legal interests in project infrastructure. The lack of a signed agreement could delay planned construction and use of federal funds tied to the projects.

What’s next: The board attorney will continue communications with Big Sandy Ave., follow up with the congressional office and outside counsel, and the board may invite outside counsel to the next meeting for a fuller briefing.